Investment Thesis1. Financial Benefits Unilever is a well established, well diversified consumer staples company with brands selling in most consumer markets around the world. Earnings yields are low and slow, but given a long time horizon, its’ strong brands and consumer loyalty combined with increasing income per capita will create long term value for our portfolio.2. ESG BenefitsScoring an A overall its IVA report, Unilever has been an industry leader in responsible sourcing of raw materials, carbon usage, fairness in the supply chain and the workplace, water use, etc.

1. Highly Diversified190 countries around the globe Emerging markets=55% of business# 1 fast-moving consumer goods employer of choice among graduates in 20 countries2 Billion people per day

3. Recognizable Brands Enable "Competitive Moat Effect"Consumer brand loyalty“Competitive moat”-being able to be the lowest cost producer and having a powerful brand are essential to keeping competition from eroding market shareException to Efficient Markets HypothesisEstablished sales and distribution channelsEconomies of scale=lower production costs

4. Long Term ValueIncreasing income per capita in developing countriesGlobal economic growth leads to more discretionary income, low elasticity of demand for food, home products etc esp. in middle classOverall profitability growing 2-3x faster than economies of scale and margins are improving

5. DividendsCash generation in excess of capital reqs leads to share buybacks and dividendsStrong dividend of 3.3%Can expect to be consistent and increasing in an economy of scale

Environmental Goals Cont'dWater Use and Sustainable SourcingOn track to halve water use by 2020-industry leaders in this area. They buy 12% of the world’s black tea and 3% of all palm oil-deforestation48% of their agricultural raw materials were sustainably sourced by the end of 2013By 2020 will source 100% of their raw materials sustainably, 50% by 2015

Social-18thpercentileWill implement UN Guiding Principles on Business and Human RightsOn track for goal to ensure total fairness along the supply chain by 2020Advancing opportunities for women by empowering 5 million women through gender balanced structure, safety, and providing opportunities for women in our value chain-Shakti projectDeveloping inclusive business by improving the livelihoods of 500,000 smallholder farmers; creating and improving the incomes of 5 million small-scale retailers in our distribution network; and increasing the participation of young entrepreneurs in our value chain.Governance62nd percentileCurrently 43% of managers are female and goal to increase to 50% by 2015IVA OverviewRecommendationBUY (in a little while...)Currently a little bit above fair value pricePut a buy hold on once stock pulls back 3-5%Short term currency weaknesses w/ euro might create short term losses and an opportunity to buy but this will even outShowing forward momentum towards CSRI 2020Best MSCI rating for a large consumer staples company